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23
Joel L. Fleishman
28 Associated Press, “ British
Airways and Korean Air
Fined Millions for Fixing
Prices,” New York Times,
August 24, 2007, C3
are designed to prevent the kinds of crimes that triggered the rush to enact
new legislation!
But let’s go back to why there is a problem in the first place, a problem that is
not likely to be solved by other means than vigilance, a problem that has another
root cause that we have to live with and take special efforts to deal with.
It is a fact that self- interest, personal material self- interest, is a dominant and
completely accepted motive for those who work in for- profit sector companies.
As far as the companies’ own behavior is concerned, “ pushing the envelope” is
what is rewarded, and such behavior is incentivized by bonuses, salary raises and
promotions. The pressure is always on for- profit sector managers, employees and
officers to make the sales and earnings projections, to win sales against competi-tors,
to design new products that improve on competitors’ products, and to achieve
those objectives by skating as close as possible to what the law, patents and ethical
codes permit. Think for a minute about the recent fines imposed by the US and
UK governments against British Air and Korean Air for colluding with Virgin Air
on the amount of the fuel surcharge and the cargo rates— a total of $ 546 million. 28
What is that if not skating close the line? The same is the case with the problems
Merck and other drug companies have encountered in alerting those who use their
medicines to possible adverse side effects. Skating close to the line. When compa-nies
design new products as close in design to other companies’ patented products
as possible without violating the other companies’ patents, that, too, is skating
close to the line.
What is the root problem?
Self- Interest as Personal Motivation
in the For- Profit Sector

23
Joel L. Fleishman
28 Associated Press, “ British
Airways and Korean Air
Fined Millions for Fixing
Prices,” New York Times,
August 24, 2007, C3
are designed to prevent the kinds of crimes that triggered the rush to enact
new legislation!
But let’s go back to why there is a problem in the first place, a problem that is
not likely to be solved by other means than vigilance, a problem that has another
root cause that we have to live with and take special efforts to deal with.
It is a fact that self- interest, personal material self- interest, is a dominant and
completely accepted motive for those who work in for- profit sector companies.
As far as the companies’ own behavior is concerned, “ pushing the envelope” is
what is rewarded, and such behavior is incentivized by bonuses, salary raises and
promotions. The pressure is always on for- profit sector managers, employees and
officers to make the sales and earnings projections, to win sales against competi-tors,
to design new products that improve on competitors’ products, and to achieve
those objectives by skating as close as possible to what the law, patents and ethical
codes permit. Think for a minute about the recent fines imposed by the US and
UK governments against British Air and Korean Air for colluding with Virgin Air
on the amount of the fuel surcharge and the cargo rates— a total of $ 546 million. 28
What is that if not skating close the line? The same is the case with the problems
Merck and other drug companies have encountered in alerting those who use their
medicines to possible adverse side effects. Skating close to the line. When compa-nies
design new products as close in design to other companies’ patented products
as possible without violating the other companies’ patents, that, too, is skating
close to the line.
What is the root problem?
Self- Interest as Personal Motivation
in the For- Profit Sector